Motorcycle Accident 

Injured Motorcyclist Receives the Largest Verdict in New Bedford Superior Court in 2010 

Snow Law Firm Settlement: $740,000

Case Description 

A motorcycle driver was hit by an inexperienced operator who was making a pizza delivery. The delivery driver said a big truck turned in front of him, and he couldn’t see the motorcyclist.

Legal Issues

The pizza shop was incorporated under two entities, but only one of the entities carried liability insurance for delivery drivers. The delivery driver was hired by and worked for the entity that did not have separate liability insurance. These two entities shared resources including suppliers and supplies, employees, accountants, bankers and insurers, and corporate officers. The delivery driver’s account of the accident details was inconsistent. There was question about whether the liability coverage extended to the corporate entity who was uninsured. Under an “alter ego” liability and/or a corporate disregard concerning the formation of the second entity, it was argued that the insurance coverage extended to one corporation should therefore extend to the pizza delivery driver employed by the other corporation.

Outcome

Attorney Steven T. Snow sued both pizza places under ‘the corporate alter ego liability theory.’ He alleged that because the two corporations shared resources and the owners failed to maintain separate corporate identities, they were really one and the same corporation. The insurance agency providing the liability insurance was also sued for not including both corporations on the policy and/or for not requiring two separate delivery drivers. The case went to trial in the New Bedford Superior Court and resulted in the largest plaintiffs verdict in 2010. There were also pending declaratory judgement actions aimed at forcing the insurer to extend coverage to the uninsured corporation.